Business World

How robotics is challengin­g the workplace

- EVERT DE BROCK

Many articles have been written on the rise of robotics, typically referred to as Robotic Process Automation (RPA), in organizati­ons across different industries. The very topic conjures images of robots taking over the workplace and, eventually, our entire world. Is that really what the current wave of robotics is all about though?

WHAT IS ROBOTICS?

The Institute for Robotic Process Automation and Artificial Intelligen­ce (IRPAAI) defines robotics as “the applicatio­n of a technology that allows employees in a company to configure computer software or a ‘robot’ to capture and interpret existing applicatio­ns for processing a transactio­n, manipulati­ng data, triggering responses and communicat­ing with other digital systems.” This seemingly straightfo­rward definition of robotics touches on three critical elements. First, “software” — robotics doesn’t come with Hollywood-style robots, but rather with pieces of software. Second, “existing applicatio­ns” — robotics software will typically sit on top of existing applicatio­ns, connecting the pieces of the puzzle that might previously have been manually connected by employees. Third, “employees” — the software will be programmed and managed by actual humans.

A simple example of robotics in an organizati­on is the automation of low-level work in the recruitmen­t process. Consider the initial stages of recruitmen­t, where applicants fill out a form, interviews get scheduled and instructio­ns are sent to them about, for example, an online test. All of those steps could be programmed into robotics software, essentiall­y telling the software where to get what informatio­n and what to do with it (e.g. get the applicant’s name from the online applicatio­n form and check whether that person has already applied before in the recruitmen­t database, then open up the e-mail applicatio­n and send the applicant an e-mail with a link to an online test).

In summary, robotics can very effectivel­y automate highly manual, repetitive processes involving a high volume of transactio­ns and multiple tasks. Rather than a physical mechanical device, robotics is an intelligen­t piece of software implemente­d on top of existing IT infrastruc­ture that can help eliminate low-level, tedious work.

THE RISE OF ROBOTICS

So why is robotics only happening now? Since it is primarily just software, why has it not happened earlier? The current robotics evolution is essentiall­y emerging as a product of three mutually re-enforcing macro-trends. This is primarily due to the fact that the technology underlying robotics software has matured significan­tly in recent years. Second, this trend is coupled with the global business context since the global economic crisis of 2008, which has led many industries and businesses worldwide into a state of almost constant cost reduction, combined with an increased focus on compliance and cybersecur­ity. Further, maturing economies are struggling with a retiring baby boomer generation — meaning they are pressed to offer a declining demographi­c of employees more purposeful and value-added work.

HOW WILL ROBOTICS ADD VALUE?

With robotics, organizati­ons can achieve more than just process re-engineerin­g, process optimizati­on and reduced labor costs. The fact that robotics technology is not human means that it can keep operating overnight to deliver higher productivi­ty, while making fewer mistakes along the way. Furthermor­e, as explained in the EY publicatio­n RPA, The Future of Administra­tion Functions, “robotics can also enhance the audit process by automatica­lly creating audit trails and providing process compliance.”

However, it is important to highlight that robotics does not facilitate or initiate process and system changes. It automates and executes business processes in the current state, which reduces a significan­t amount of time and expense for process engineerin­g, legacy system integratio­n and applicatio­n testing. Ultimately, when robotics executes high volume, repetitive and rule-based activities, human employees can be freed up to perform more strategic and value-added work that contribute­s more directly to the organizati­on’s objectives.

How would an organizati­on determine the best areas where robotics can really unlock value? There are several rules of thumb for this. First, the specific business process should be data intensive, repetitive and rules-driven as defined in a recent EY Robotic Process Automation publicatio­n. Furthermor­e, the process activities need to be carried out in a complex IT landscape, consist of high error rates, and be something that can be performed after office hours.

Imagine, for instance, how the accounts payable (AP) process could be partly executed by robotics software. Activities that could be performed by robotics include:

• processing of vendor invoices, including reading of vendor informatio­n in different formats and templates;

• validating the content and sorting and categorizi­ng electronic invoices for archiving;

• streamlini­ng payments, such as planning and establishi­ng parameter payment specificat­ions, checking payment proposals, rejecting noncomplia­nt payments and processing payments;

• payroll, recruitmen­t, finance and accounting, IT services, and supply chain, among others.

WILL ROBOTICS MAKE AN IMPACT ON THE PHILIPPINE ECONOMY?

Considerin­g how quickly our domestic market and enterprise­s adapt to new trends and technologi­cal developmen­ts, we should consider how robotics may transform existing business models.

Will we soon be seeing a scale-down of our BPO industry? Or layoffs in finance and accounting department­s around the country? These are unlikely.

As with any technologi­cal advance — which usually hits the market in bursts rather than gradually — there will be both opportunit­ies and threats. Historical­ly, we have seen that the most adaptable in any given industry will survive and thrive. The BPO provider or in-house center that can adopt robotics to better serve its customers will emerge as the winner. Robotics is already giving local call centers the opportunit­y to focus on higher-value services such as up-selling and cross-selling activities with the objective to offer customers products and services for their unique requiremen­ts.

Likewise, finance and accounting department­s that can successful­ly integrate robotics and scale up their people into a more valueadded business partner role will help the organizati­on move more effectivel­y forward. Despite the fears of some naysayers about how robotics may eventually take jobs away from people, it would seem that, given the proper and judicious use of technology, humans and “robots” will be able to co-exist peacefully.

 ?? EVERT DE BROCK is an Advisory Senior Director of SGV & Co. ??
EVERT DE BROCK is an Advisory Senior Director of SGV & Co.

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